Ridham Desai

Indian banks are in a sweet spot: balance sheets are pristine, the interest rate cycle has dropped so net interest margins have bottomed, credit growth is accelerating, and the unfolding capex cycle would disproportionately benefit financials. Valuations are attractive on both absolute and relative bases.

Indian equities present a great long-term opportunity. India trades at the lowest relative multiple in 35 years, terminal growth remains far superior to most other countries, and equities are a long-duration asset class where terminal growth matters most. Growth is already accelerating quarter on quarter, valuations are the best in many years, and investors appear under-positioned.